Ukraine war ‘set to hit’ Tanzania’s horticulture business

Arusha. The war in Ukraine could have a devastating effect on Tanzania’s multi-million-dollar horticulture industry, owing to its nature of supply chain.

The $779 million horticulture was projected to rake in more foreign currency for both farmers and the economy, after the industry champion, Taha, had opened-up Ukraine market, among others key overseas markets.

“We are keeping a tight watch on the development of Ukraine war because exporters may stop business if the war escalates. And should that happen horticultural growers who have produced tremendously to satisfy the Ukraine new market will be counting losses” Taha Group CEO, Ms Jacqueline Mkindi, explained.

Taha unlocked the Ukraine’s market through the Enhancing Market Access for Horticultural Products (EMAHP) project funded by the Trademark East Africa (TMEA).

So far the farmers have been exported 109 metric tons of ginger, green beans, chilies and bitter gourd, thanks to trinity partnership of TMEA, Taha and intermediate company, Akida Group Ltd.

The lately registered in Tanzania, Akida Group Ltd, a subsidiary of ATB- market LLC, one of the leading retail trade companies in Ukraine with over 1,500 supermarket chains.

The company’s official, Dr Promise Isaac, is on record as saying that the firm requires two shipping containers loaded with an overall weight of 29 metric tons (tonnes) of ginger for export to Ukraine every week.

“This is a massive market opportunity for Tanzania’s ginger. The window is not just a one-off purchase, ours is a lifetime commitment,” Dr Isaac said during a maiden export of 22 tonnes of organic ginger from Mamba Miamba in Same District.

In its efforts to capture international markets, Taha has embraced a bitter gourd with high demands in Germany and UK, owing to its nutritional values, into high and commercial crop value chain.

“From December to mid-February 2022, farmers have been able to export over 44 tonnes of bitter gourd to Germany, earning them Sh60 million directly and $132,000 in foreign currency for the economy”.

Taha is projecting that local farmers will export 350 tonnes between now and June, fetching them Sh472.5 million directly and the economy $1.05 million in foreign currency.

In the November 2022 and May 2023 season, the bitter gourd farmers are expected to export 1,400 tonnes and earn them Sh1.8 billion and the economy $4.2 million, Ms Mkindi said.

Taha’s painstaking efforts to enhance the country’s capacity to access international horticultural markets, saw nearly 1,600 metric tons of horticultural crops exported in 2021 by the certified farmers, realizing over $1.6 million annual turnover.

“Our initiatives also attracted investments worth $818,400 by off takers in 2021” Ms Mkindi noted, adding: “in the process we have created 2,218 decent jobs with a significant multiplier economic effects to the local population”.

Taha, through its subsidiary “Greencert,” has facilitated a total of seven companies in acquiring GlobalGAP - and three others with BRC certifications.

Trademark East Africa’s country programme manager, Mr Elibariki Shammy, is proud of the massive impact recorded, saying the project has value for money.

“I can safely say that the project to enhance market has value for money.

“Farmers have been facilitated to get GlobalGAP certifications for their crops to comply with export markets standards, export volume has grown by leaps and bounds, we are also seeing increased women and youth employment along the value chains. We are very proud indeed” Mr Shammy explained.